The Upper Tribunal has dismissed an appeal by Shinelock Ltd concerning whether the company was entitled to a loan relationship debit for a payment made to its shareholder.
The FTT had held that the payment did not give rise to an accounting debit in respect of a loan relationship.
The UT upheld the outcome of the FTT decision on the further basis that the payment was a distribution under s.1000(1)F Corporation Tax Act 2010 and therefore could not be brought into account under the loan relationships code.
The full decision is available here.
Michael Ripley represented HMRC.